ITO 1(3)(2), MUMBAI V. SURGA ENTERPRISES LTD, MUMBAI

ITA 2959/MUM/2009

• Counselvise Citation: [2010] 136 COUNSELVISE.COM (IT) 2276 (ITAT-MUMBAI)
• Duration Of Justice: 11 month(s) 1 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 08-04-2010
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: E
• Assessment Year: 2003-2004
• Appeal Filed On: 07-05-2009
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: NAVEEN GUPTA
• Assessee Lawyers: S VENKATRAMA N
• Keywords: Notional interest
• Section: 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH E: MUMBAI BEFORE SHRI P.M. JAGTAP (AM) AND SHRI R.S. PADVEKAR (JM ) ITA NO. 2959/MUM/2009 (ASSTT. YEAR : 2003-04) INCOME TAX OFFICER APPELLANT 1(3)(2), MUMBAI ROOM NO. 541, 5 TH FLOOR, AAYAKAR BHAVAN, M.K. ROAD, MUMBAI 400 020 V/S. M/S. SURGE ENTERPRISES LTD., RESPONDENT THE TIMES OF INDIA BLDG., DR. D.N. ROAD, MUMBAI 400 001 PAN : AAACS6013J APPELLANT BY :MR. NAVEEN GUPTA RESPONDENT BY :MR. S. VENKATRAMA N : O R D E R : PER R.S. PADVEKAR, J.M THE REVENUE HAS FILED THIS APPEAL CHALLENGING XXI, MUMBAI DT. 17.2.2009 FOR THE 2003-04 IN WHICH THE LD CIT(A) H AS DELETED THE PENALTY LEVIED BY THE A.O U/S. 271(1)(C ) OF THE ACT OF RS. 5,14,500/-. 2. WE HAVE HEARD THE PARTIES. IN THIS CASE, THE AS SESSMENT OF THE ASSESSEE WAS COMPLETED U/S. 143(3) OF THE ACT. TH E MAIN CONTROVERSY WAS IN RESPECT OF DETERMINATION OF THE ANNUAL LETTING VALU E (ALV) IN RESPECT OF THE BUILDING/PREMISES WHICH WAS GIVEN ON RENTAL TO M/S. BENNET COLEMAN & CO. LTD., THE ADDITION MADE BY THE A.O WAS CONFIRMED B Y THE LD CIT(A). THE A.O INITIATED THE PENALTY PROCEEDINGS U/S. 271(1)(C) OF THE ACT AND LEVIED THE PENALTY OF RS. 5,14,500/- WHICH WAS IN RESPECT OF D ETERMINATION OF THE RENTAL INCOME AT RS. 14,00,000/- BASED ON ALV. THE ASSESS EE CHALLENGED THE IMPUGNED ORDER OF THE LD CIT(A) CONFIRMING THE ADDI TION MADE ON ACCOUNT OF THE DETERMINATION OF THE ALV. AFTER CONSIDERING TH E NOTIONAL INTEREST ON THE ITA NO. 2959/MUM/2009 2 DEPOSIT TAKEN FROM M/S. BENNET COLEMAN & CO. LTD., THE TRIBUNAL DELETED THE ADDITION MADE BY THE A.O WHICH WAS BASED ON NOTIONA L INTEREST ON SECURITY DEPOSIT TAKEN BY THE ASSESSEE. THE ADDITION ON WHI CH THE A.O HAS LEVIED THE PENALTY HAS BEEN DELETED BY THE TRIBUNAL AND HENCE, THE VERY BASIS OF THE LEVY PENALTY HAS GONE, HENCE THE PENALTY DOES NOT SURVIV E. 3. IN THE RESULT, THE REVENUES APPEAL IS DISMISSE D. ORDER PRONOUNCED IN THE OPEN COURT ON 8TH DAY OF APRIL, 2010. SD/- SD/- (P.M. JAGTAP) (R.S. PADVEKAR) ACCOUNTANT MEMBER JUDICIAL MEMB ER MUMBAI, ON THIS 8TH DAY OF APRIL, 2010. :US COPY TO: 1. APPELLANT 2. RESPONDENT , 3.THE CIT(A)- XXI, MUMBAI 4.THE CIT I, MUMBAI 5.THE DR, E BENCH, MUMBAI 6.GUARD FILE BY ORDER TRUE COPY ASSTT..REGISTRAR, ITAT, MUMBAI. ITA NO. 2959/MUM/2009 3 US DATE INITIALS 1. DRAFT DICTATED ON 31/3/10 --------------- SR.P.S . 2. DRAFT PLACED BEFORE AUTHORITY 01/4/10 -------- ------ SR.P.S. 3. DRAFT PROPOSED & PLACED ----------- ---------- --- JM BEFORE THE SECOND MEMBER 4. DRAFT DISCUSSED/APPROVED ----------- ----------- -- JM/AM BY SECOND MEMBER 5. APPROVED DRAFT COMES TO ----------- ------------ - SR.P.S. THE SR. P.S./P.S 6. KEPT FOR PRONOUNCEMENT ON --------- ----------- -- SR.P.S. 7. FILE SENT TO THE BENCH CLERK --------- --------- ---- SR.P.S. 8. DATE ON WHICH FILE GOES TO THE ------- --------- ---- 9. DATE OF DISPATCH OF ORDER --------- --------- ----